Your Perfect Assignment is Just a Click Away

We Write Custom Academic Papers

100% Original, Plagiarism Free, Customized to your instructions!

How It Works
Order Now
glass
pen
clip
papers
heaphones

Discussion: US dollar interest rate and the Swiss Franc interest rate

Mar 2, 2022 | Business Finance - Economics | 0 comments

Mar 2, 2022 | Business Finance - Economics | 0 comments

Discussion: US dollar interest rate and the Swiss Franc interest rate

Professional Assignment 2 – CLO 6
Suppose that the US dollar interest rate and the Swiss Franc interest rate are the same, 5 percent per year, but that there is a risk premium of 1 percent associated with holding Swiss Franc rather than US dollars over the year.
(a) What is the relationship (in percentage terms) between the current equilibrium dollar/franc exchange rate and its expected future level?
(b) If the expected future exchange rate is $1.12 per franc, what is the equilibrium dollar/franc (spot) exchange rate?
Now suppose that the expected future exchange rate, $1.12 US per franc, remains constant as Swiss’s interest rate rises to 10 percent per year.
(c) If the US interest rate also remains constant, what is the new equilibrium dollar/franc exchange rate?
Document your citations throughout the text of your paper; APA is the accepted format for all Westcliff University classes. Your papers must include an introduction and a clear thesis, several body paragraphs, and a conclusion. Top papers demonstrate a solid understanding of the material AND critical thinking.

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Blackboard Experts only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Blackboard Experts are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Blackboard Experts is known for timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Blackboard Experts, we have put in place a team of experts who answer to all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.